How to save your money in Motor insurance policies

How to save your money in Motor insurance policies?

Be it a car, a bike, a taxi or any other vehicle, one common thing that the vehicle owner must do is to insure the vehicle. A third party vehicle insurance is mandatory for every vehicle running on Indian roads according to the country’s road laws. Motor Insurance policies not just help in following the laws but also act as an economic tool. The insurance policy reduces the expenses that arise due to an accident or natural and man-made disasters. It also reduces the complexity involved in the repair processes. 

To enjoy a motor insurance policy’s benefits, one must have to pay a premium amount to activate the policy. Each policy has its tenure, after the tenure completion the policyholder has to renew the policy to keep the benefits live. 

There are several options by which the individual can reduce the expenses regarding the insurance policy premium. Let’s have a study on the possible hacks,

No Claim Bonus ( NCB ) 

NCB is an interesting concept relating to motor insurance policies. If there aren’t any claim records during the policy tenure, then the policyholder can enjoy a discount on the policy’s renewal premium. The discount percentage varies with respect to the number of unclaimed tenure records. More the number of years, claims aren’t made, more the discount the policyholder will be benefited. Experts recommend not to go for insurance claims during minimum repair service situations. 

Automobile association of India 

When an individual is a member of the Automobile Association of India, he/she will enjoy certain benefits on their motor insurance policy. 

Insured Declared Value ( IDV ) 

It is the market value of the policyholder’s vehicle. In the real world, as the vehicle’s age increases the IDV decreases, which in turn impacts the premium amount. The premium value also decreases as time pass by. The insured declared value depends on the vehicle’s year of make, and it’s condition. Policyholders have the choice of decreasing the IDV of the vehicle. 

Anti-theft device presence 

When a vehicle has an ARAI approved anti-theft device installed, the policyholder can get a discount on the own damage premium. The cutoff value could be 2.5% up to a maximum of Rs 500. 

 

Conclusion 

 

Hope, the blog gets you an idea on the possibilities of reducing the expenses revolving around the motor insurance policy. The scenarios look very simple and when executed turn much economical. Now enjoy even more benefits using motor insurance policies! Head on to IVA Insurance to buy and renew insurance policies.

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